Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $30. The variable costs of production for one case of cans are as follows:

Direct material	$	8.50
Direct labor		3.00
Variable manufacturing overhead		6.50
Total variable manufacturing cost per case	$	18.00

Variable selling and administrative costs amount to $0.60 per case. Budgeted fixed manufacturing overhead is $522,000 per year, and fixed selling and administrative cost is $44,000 per year. The following data pertain to the companys first three years of operation.

		Year 1			Year 2			Year 3
Planned production (in units)		87,000			87,000			87,000
Finished-goods inventory (in units), January 1		0			0			26,500
Actual production (in units)		87,000			87,000			87,000
Sales (in units)		87,000			60,500			100,250
Finished-goods inventory (in units), December 31		0			26,500			13,250

Actual costs were the same as the budgeted costs. Required: PLEASE ANSWER ALL QUESTIONS BELOW WITHIN THE APPROPRIATE EXCEL CELL!!!! 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using: a. Absorption costing. b. Variable costing.

(1A): PLEASE ANSWER ALL QUESTIONS FOR 1A BELOW WITHIN THE APPROPRIATE EXCEL CELL!!!!

(1B): PLEASE ANSWER ALL QUESTIONS FOR 1B BELOW WITHIN THE APPROPRIATE EXCEL CELL!!!!

2. Reconcile Chataqua Can Companys operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. (PLEASE ANSWER ALL QUESTIONS FOR #2 BELOW WITHIN THE APPROPRIATE EXCEL CELL!!!!)

3. Suppose that during Chataquas fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. a. What will be the difference between absorption-costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing?

(3A): (PLEASE ANSWER ALL QUESTIONS FOR #3A BELOW WITHIN THE APPROPRIATE EXCEL CELL!!!!)

(3B): (PLEASE ANSWER ALL QUESTIONS FOR #3B BELOW WITHIN THE APPROPRIATE EXCEL CELL!!!!)

THANK YOU IN ADVANCE FOR PLACING ALL ANSWERS WITHIN THE APPROPRIATE ANSWER BOXES! :)

Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3A Req 3B Prepare operating income statements for Chataqua Can Company for its first three years of operations using absorption costing. Year 1 Year 2 Year 3 $ 0 $ 0 $ 0 Selling and Administrative Expenses GA 0 $ 0 $ 0 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Req Req 3B Prepare operating income statements for Chataqua Can Company for its first three years of operations using variable costing. Year 1 Year 2 Year 3 Variable expenses: $ 0 $ 0 $ 0 Fixed expenses: $ 0 0 0 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Req Req 3B Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. Year Change in inventory (in units) Predetermined fixed overhead rate Difference in fixed overhead expensed under absorption and variable costing 1 2 3 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Req Req 3B Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. What will be the difference between absorption-costing income and variable-costing income in year 4? Difference in reported income Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req Req 3B Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Total operating income will be higher under variable costing. Total operating income will be higher under absorption costing. Total operating income will be same under absorption and variable costing